Property Taxes: What You Need to Know

There are things you might not know enough about when it comes to property taxes. For those who haven’t bought a home yet it’s time to break the ice, you need to gain a deeper knowledge about property taxes.

So, what is property tax? It’s a tax on real estate you own, both the value of your home and the land. The funds collected from property taxes are used for road construction, libraries, public schools, and a good number of other programs.

If you are a new homeowner, you probably pay a big property tax bill every year depending on the regulations you live off.

Here’s some things every homeowner should know about their property taxes.

Paying Your Property Taxes

The best thing to know is how much you will pay in property taxes.

So how would you know that? A tax assessor will determine your property tax where you live and the amount the house is valued.

 You should receive an Annual Notice of Assessment (this is NOT a bill) which will inform you, the property owner, of the current fair market value as calculated by the Board of Tax Assessors as well as the assessed value of your property. 

The Annual Notice of Assessment also includes estimated taxes that are based on the previous year's millage rate and the current year's value. The actual tax bill will be calculated on the millage rates set by the Board of Commissioners and the Board of Education for the current year. Tax bills are usually issued by the Tax Commissioner in August but all depends on your state/county.

Property Tax Exemptions May Apply to You

In some cases, you might be eligible for a property tax exemption. Tax exemption reduce your obligation to pay tax. It may vary by state and by local tax judication. The best way to figure out if you’re eligible is to contact your local tax assessor.

If you are a military veteran, more than likely you are qualified for exemptions.

You Can Appeal Your Assessment or Property Value

Many homeowners don’t realize that they can lower their property taxes. Believe it or not, only 2% of homeowners appeal their assessments.

It’s best to pay attention to assessment and reassessments. The assessor compares your property to similar properties that have sold in the area, such as the same age, size, and similar amenities. It’s based on variables that make your property valuable. You never know, it’s worth a try to lowering your tax bill.

In any case, do more research on property taxes, before you purchase a home. It’s important to have some knowledge about what percentage of your budget will go toward them.

If you want a full team of experts, we’re happy to help you make the best decision. Taking action now is the wisest way to achieve your goals for tomorrow!

Please don’t hesitate to reach out to us, we look forward to hearing from you!